Supplier Relations

Our company has established the 'Supplier Evaluation Operating Guidelines' to conduct regular evaluations of suppliers, ensuring they understand our company's audit standards and also allowing them to identify areas for improvement and strengthening.

Our Supplier Development Program involves various departments (e.g., Engineering, Quality Assurance, Procurement) collecting data on order volumes, daily incoming material quality, Hazardous Substance Free (HSF) characteristic management, and material quality/HSF characteristic status. We conduct supplier development and assessments, and hold quarterly Supply Chain Risk Management meetings with Quality Control and related business units to identify and manage risks such as supplier capacity shortages, quality issues, or supply chain disruptions. The management performance of the supply chain is reported to Production Control, Procurement, Quality Assurance, and the General Managers in June and December each year.

Assessment Result Classification:

  • 90-100 Points: Quality System, HSPM System, and Environmental System approved; priority for sample submission and mass production delivery.
  • 80-90 Points: Quality System, HSPM System, and Environmental System approved; sample submission and delivery permitted. Assistance provided to follow up on supplier corrective actions for non-conformities.
  • 70-80 Points: Quality System, HSPM System, and Process Capability conditionally approved; suppliers must immediately implement corrective actions to meet requirements. Suppliers must provide timely responses on corrective actions for non-conformities; a follow-up review may be required based on the content of the countermeasures.
  • Below 70 Points: Quality System, HSPM System, and Process Capability not approved.

Suppliers who pass the assessment are added to the Approved Supplier List and are eligible for transactions. Supplier performance is then monitored and managed. The Procurement Department conducts monthly supplier assessments based on quality scores provided by the Quality Control Department, considering factors such as quality, unit price, cooperation, delivery performance, and HSF. The assessment results are recorded and distributed to relevant departments. The overall score is calculated by weighting these five factors: Quality (50%), Unit Price (20%), Cooperation (5%), Delivery Performance (5%), and HSF (20%).

  • A Grade: 85 points and above
  • B Grade: 75-84 points
  • C Grade: Below 74 points

If a material supplier receives a C grade for three consecutive months, the Procurement Department will issue a formal notification to the supplier to conduct a quality review meeting at our facility, requesting quality improvement. The Quality Assurance Department will participate in the meeting.

2024 Performance:

  • 18 new suppliers were assessed, with 17 approved, achieving a 94% approval rate.
  • 35 existing suppliers were assessed, with 30 achieving A grade, 4 achieving B grade, and 1 achieving C grade (which has since been improved to B grade through development).